The IRS Will Pursue Enforcement Actions Against Sophisticated Investors, Businessmen, and Anyone Who Interferes with the Tax System

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The IRS Will Pursue Enforcement Actions Against Sophisticated Investors, Businessmen, and Anyone Who Interferes with the Tax System

There are no shortage of justifications that people can come up with to make themselves feel as if a tax enforcement action cannot happen to them. A sophisticated head of an investment firm might consider himself or herself too clever to be caught by the IRS or he or she may feel that the IRS will focus on “easier targets.” Other business owners may believe that their simple restaurant, retail store, or other business is too small for the IRS to take notice. Still others may believe that their government office or other respected position will deflect suspicion and permit them to fail to satisfy the full extent of their tax obligations.

The following tax convictions or tax charges are intended to inform the public about the potential serious consequences a tax issue can create. If you think you may have made a mistake similar to the following on your taxes, don’t hesitate to contact an experienced tax professional today. The Tax Attorneys and CPAs of the Tax Law Offices of David W. Klasing, P.C. are dedicated to helping taxpayers resolve their serious tax concerns.

Brokerage & Investment firm CEO pleads guilty to tax charges
Following an investment scheme that lost about $4 million for about 60 investors, the former president and CEO of Sherman Oaks-based Morgan Peabody Inc. pleaded guilty to a number of crimes. According to the plea agreement, the executive admitted to using investor money to pay for personal expenses and luxury items. Furthermore he admitted to failing to file taxes for two tax years while also failing to disclose his fraudulent income.

While the former investment head was embroiled in a jury trial over the charges, that trial was cut short by his decision to enter a guilty plea. David Williams, a licensed securities dealer and investment adviser from Studio City, entered guilty pleas for three counts of wire fraud and two counts of tax evasion. Williams will be sentenced in September where he faces a federal prison sentence of up to 70 years and other penalties.

Former Denny’s owner convicted of sales tax evasion
Ownership of a restaurant or any business comes with certain financial responsibilities. One of those responsibilities is to collect, hold and pay over sales tax paid by customers of the business. Unfortunately some business owners simply see the government’s tax money as an easy way to pad their bottom-line. While a business may succeed in wrongfully converting these funds for a time, the State of California will eventually uncover the fraud and bring tax charges against the business owner.

On May 5th, 2015, the former owner of three Denny’s restaurants located in the San Joaquin Valley – Lathrop, Manteca, and Stockton — was convicted on tax charges. Appearing in San Joaquin County Superior Court, Abdul Halim of Tracy pleaded guilty to two felony counts of tax evasion and one misdemeanor count of tax fraud due to failure to pay over sales tax collected. He was sentenced to 10 years of probation, 3,500 hours of community service, and $790,428 in restitution. If he misses a single tax payment or otherwise violates terms of his parole, he will face a prison sentence.

Man arrested after allegations of tax fraud case jury tampering
The Mobile County License Commissioner Kim Hastie and her husband, John, have faced criminal tax charges due to what prosecutors have described as a conspiracy to not report $58,633 in income. According to allegations for the prosecutors, the Hasties used this money to balance their finances. While a deadlocked jury resulted in a mistrial, prosecutors allege that actions by John Hastie may have improperly influenced jurors.

Prosecutors allege that John Hastie attempted to influence potential jurors prior to the court proceedings. They believe that Hastie asked one of his employees to speak with the wife of a potential juror on the case. They believe that the juror may have been improperly influenced. The prosecutors also point to an alleged call by the Monroe Coutny Sheriff that occurred a day after potential jurors were announced. The prosecutors claim that the Monroe County Sheriff stated that sheriffs from two other counties called him to try and discover information about four other jurors.

The Hasties deny all charges. Jury selection for the re-trial is expected to begin at the end of June.

Tax trouble?
If you believe that you may have failed to file taxes, failed to pay your full share of taxes, have taken overly aggressive position, or have made other tax errors the Tax Law Offices of David W. Klasing may be able to help remove the risk of criminal prosecution. Our Tax Attorneys and CPAs can review your tax filings and fincial records to devise a solution to your tax compliance problems. To schedule a reduced-rate consultation, call 800-681-1295 today or contact us online.